Goldman Sachs initiates its coverage on Dolby Laboratories (NYSE: DLB) with a Sell rating and a price target of $39.

Goldman Sachs notes, "We like Dolby's brand recognition, broad ecosystem, and international growth opportunities. However, we expect two headwinds to weigh on the company's near-term results: 1) ongoing secular trends moving to new form factors (e.g., smartphones, tablets) with lower revenue per unit, and where we think demand for
premium sound on mobile devices is debatable, and 2) reliance on consumer discretionary spend amid high levels of unemployment."